(MENAFN- Khaleej Times) Agthia Group, a food and beverage group in the UAE, has reported net profit of Dh165 million for the first nine months of 2017. Net revenue grew 2.9 per cent over the same period to reach Dh1.57 billion, the company said.
Dhafer Ayed Al Ahbabi, chairman of Agthia Group, said the group continued to report impressive performance in a market marked by economic transformation and geopolitical change. "While we have not been left unscathed, our results show that we are working harder than ever to create value for all our stakeholders through our products and people."
"We have worked hard to minimise the impact of the phased subsidy withdrawals that began in 2016 - and we've been successful. Since our 2015 business review, we have been actively pursuing a strategy to reverse the balance of our business in favour of the consumer categories water, beverages and food because of their higher growth potential," said Tariq Al Wahedi, CEO of Agthia Group.
The group said its flagship water and beverages business drove the growth, with revenues rising 27 per cent to Dh695 million compared to the same period a year earlier.
Al Ain Zero continued its penetration into UAE households, with a five-gallon format launched locally and regionally as exports of small-format bottles began to Oman. Bottled water and 5-gallon sales grew strongly, supported by results from the new Delta Water business in Saudi Arabia.
Growth in these two segments helped total consumer business sales surpass agribusiness. Revenues from the food category, part of the consumer business, grew two per cent to Dh133 million.
However, combined flour and animal feed revenues - Agthia's agribusiness - declined 12 per cent to Dh739 million following the gradual withdrawal of subsidies from July 2016, the company said.
In flour, revenue reached Dh299 million, behind the previous year due to lower retail and export sales. Animal feed recorded net revenue of Dh440 million, lower than the same period a year earlier because of a delay in a government tender contract.
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